BADM 4801 Lecture Notes - Lecture 1: Competitive Advantage, Eharmony
18 Mar 2019
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Document Summary
A set of goal-driven action taken by a company relative to its competitors to achieve competitive advantage. Must: diagnose competitive challenge through analysis of external & internal environments, have a guiding policy to address challenge, coherent actions. It is not: grandiose statements or goals, operational effectiveness, competitive benchmarking, or other tactical tools, these are components of competitive strategy. To be successful: analysis, diagnosis of competitive challenges, involves assessment of internal and external environments, formulation, guiding plans & policies to address competitive challenges, strategic positioning. Stake out a unique position within an industry: implementation, a set of coherent actions to implement the firm"s guiding policy, twitter struggles with this: Different types of users with different preferences. Achieving relative superior performance: always relative, not absolute. To assess competitive advantage: compare firm performance to a benchmark, performance of other firms in the same industry, industry average. Sustainable competitive advantage: outperforming competitors or the industry average over a prolonged period of time.
